Wednesday, September 27, 2006

 

Gold Climbs Above $600 Mark

MarketWatch reports on the move in gold today. "Gold futures closed Wednesday above $600 an ounce for the first time in more than two weeks, extending strength from the previous session with support from strong overseas demand, firmer oil prices and the recent conclusion to European central bank sales of the precious metal."

"'The catalyst for this move has been the convergence of two primary factors: the cessation...of the central bank disposals and the emergence of positive demand reports from key consuming countries,' said Jon Nadler, an investment products analyst at bullion dealers Kitco.com."

"'We have a feeling that hard-core bears will want more evidence of sustained strength, and they will be looking for slippage in the dollar, rising oil, and aggravating geopolitics before they, too, commit to the market to the same extent they did in the second quarter of this year,' he said."

"Gold sales for this year, under the central bank gold sales agreement, a handshake pact among central banks that set limits on each year's sales of the metal from sovereign vaults, concluded on Tuesday."

"Against this backdrop, gold for December delivery closed up $6.20 at $603.30 an ounce on the New York Mercantile Exchange. It climbed as high as $604.80, the contract's strongest level since Sept. 11."

"Crude-oil futures rallied to close near $63 a barrel Wednesday as the latest report of ample U.S. petroleum supplies raised the prospect that the Organization of the Petroleum Exporting Countries will decide to cut production."

"Oil 'remains a crucial factor in gold's movements though, with another dip below $60/barrel still having the potential to trigger a correction back to the June lows of $542/oz,' said James Moore, analyst at TheBullionDesk.com. November crude futures fell under $60 on Monday, the contract's weakest level since November of last year."

"With oil prices higher Wednesday, strength in the U.S. dollar failed to cap gold's gains. The greenback touched a one-week high against the yen, but was slightly weaker against the euro after a U.S. report showed better-than-expected sales of new homes in August."

"Other metals moved higher along with gold, with silver posting the strongest gains. December silver rose 20.5 cents to close at $11.70 an ounce after an $11.82 high, the strongest level the contract has seen since Sept. 11. 'Having cleared chart resistance at $11.40, [silver] should now be looking to edge back towards $12,' said Moore."

"Palladium saw its December contract rise by $1.35 to close at $320 an ounce and October platinum futures rose $7.40 to end at $1,139 an ounce."

Comments:
Nice move today in gold, and silver was better. Could the new stock market high mark a new top? Elections are 2 months away.
 
gofast

Yes it was. but $600 is only a psychological point. I would be more curious to see a chart with the 200 day moving average. Does anybody have a link to a chart like that? Spot price referred.
 
everyone is raving about the dow almost getting to it's old high. nobody realizes it's down 50% in dow/gold terms.
 
spot on john_law..
 
Post a Comment

<< Home

This page is powered by Blogger. Isn't yours?